High productivity workers could receive subsidies under optimal tax system
The article explores how to set the best taxes on people's income in changing economies. They look at situations where people's skills improve over time, either because of the government's actions or on their own. By studying how people make decisions about work and spending, the researchers found that sometimes it's better to give money to those who are very productive instead of taking it away. This can help make sure everyone has a fair chance to succeed.